Chilean stocks fell on Friday as heavy fluctuations in the peso currency this week rattled investors, aggravating concerns about the damage the currency strength could have on exporters, analysts said.
The IPSA blue-chip index fell 1.06 percent to 1,459.48 points, while the broader IGPA index dipped 0.50 percent to 7,223.32 points.
Turnover was low at $14 million. "I think the market is still expecting the foreign exchange rate to find a balance to be able to weigh up the effects it will have on companies we also have to underscore the low trading volumes due to the absence of pension fund investors," said Rodrigo Cristi, analyst with Alfa brokerage.
Though the peso currency closed flat at 573.80/574.30 per US dollar on Friday it fell 1.29 percent in early trade, pressured by the rise of the dollar against the euro, before righting itself at close.
The peso hit a 39-month high last week after gaining 21 percent in 2003.
Despite exporters' cries for measures to stabilise the currency, the Central Bank has said it is not ready to intervene in the market and that the currency is trading within normal levels.
Cristi added that speculation that the peso may firm again next week kept many investors in the sidelines.
Industrial conglomerate Empresas Copec, which exports woodpulp plunged 1.1 percent to 4,200 pesos.
Energy group Enersis and its generating unit Endesa Chile fell 1.69 percent to 82 pesos and 2.87 percent to 237 pesos respectively.
Comments
Comments are closed.